KineMed, Inc., a platform-based drug development and advanced medical diagnostics company, today announced that the National Institute of Neurological Disorders and Stroke (NINDS) branch of the National Institutes of Health (NIH) has awarded the Company a Phase I Small Business Innovation Research (SBIR) grant to develop applications of a KineMarker (TM) assay for myelin disorders. The Company's KineMarkers (TM) are in vivo, stable isotope kinetic biomarkers that measure the flux of molecules through complex and therapeutically relevant biological pathways. As part of KineMed's neurobiology initiative, KineMed researchers have developed a biomarker that measures the synthesis of myelin, the outer covering of nerve cells that is destroyed in Multiple Sclerosis and other neurodegenerative diseases.

"The NIH has again chosen to provide funding for KineMed to develop a test in yet another disease state," commented David Fineman, President and CEO of KineMed. "KineMed's proprietary assay technologies reveal new understandings of pathogenesis, and we look forward to developing both a preclinical and clinical kinetic biomarker test in Multiple Sclerosis and other disorders of demyelination which may enhance the efficiency of drug development and also guide clinical decision making and alternate treatment strategies. This new grant is in addition to over $5 million dollars previously awarded in the areas of prostate cancer, osteoarthritis, toxicology, and chronic lymphocytic leukemia."

About Multiple Sclerosis
Multiple Sclerosis (MS) is a chronic disease of the central nervous system, which predominantly affects young adults during their most productive years. MS is the most common of the demyelinating diseases and is a chronic, progressive neurologic disorder that affects 250,000 - 300,000 people in the United States. Pathologically, MS is characterized by the presence of areas of demyelination and T-cell predominant perivascular inflammation in the brain white matter.

Associated with significant disability, MS has a large impact not only on health but also on quality of life, productivity and employment. Current treatment strategies for MS have largely been aimed at the presumed immune-mediated aspect of the disease.

About KineMarker(TM) Assays
Kinetic biomarkers, or KineMarkers(TM), provide an exclusive set of tools for measuring the flux of molecules through complex biomolecular pathways in living systems. This platform technology measures the dynamics of therapeutic response to drugs in the intact organism, both animal and human.

About KineMed, Inc.
KineMed, Inc. delivers new, significant value from existing drugs using its proprietary, kinetic biomarkers. KineMed's patented approach merges the insights and methods of systems biology with the precision and specificity of molecular analysis. This is done quickly and cost-effectively, both in animal models and in human subjects, producing new insights into the therapeutic and economic potential of a company's existing compounds. Although KineMed's technology is applicable to developing new chemical entities, KineMed is a "repurposer" of drugs. KineMed's technologies apply towards discovering new uses for both approved and unapproved compounds that have clinical data and favorable safety profiles. Every major pharmaceutical firm has a group of such compounds. The potential to add value through repurposing is therefore significant. Many efforts to breathe new life into existing drugs focus on approaches such as reformulations, which can indeed yield meaningful improvements. KineMed not only provides an ability to screen for best in class of a formulation, but enables the discovery of entire new therapeutic applications for existing compounds.

This press release contains "forward-looking" statements within the meaning of Section 21A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbors created thereby. Such forward-looking statements include statements regarding KineMed's expectations in receiving grant funding in the amount and on the schedule noted above. The success of receiving initial and ongoing grant funding could differ materially from expectations projected in the forward-looking statements as a result of known and unknown risk factors and uncertainties. Such factors may include, but are not limited to, risks and uncertainties related to how KineMed's research initiatives progress and meet expectations over time, and changes in NIH ability to provide funding.

For further information about KineMed, please visit: http://www.kinemed.com

CONTACT:
Lisa Misell, Ph.D. of KineMed, +1-510-655-6525
or Kathy Nugent, Ph.D. (media), Burns McClellan, +1-212-213-0006, for KineMed, Inc.